Correlation Between BECLE SAB and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both BECLE SAB and Hawesko Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BECLE SAB and Hawesko Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BECLE SAB DE and Hawesko Holding AG, you can compare the effects of market volatilities on BECLE SAB and Hawesko Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BECLE SAB with a short position of Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BECLE SAB and Hawesko Holding.
Diversification Opportunities for BECLE SAB and Hawesko Holding
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BECLE and Hawesko is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BECLE SAB DE and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG and BECLE SAB is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BECLE SAB DE are associated (or correlated) with Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of BECLE SAB i.e., BECLE SAB and Hawesko Holding go up and down completely randomly.
Pair Corralation between BECLE SAB and Hawesko Holding
Assuming the 90 days horizon BECLE SAB DE is expected to generate 2.03 times more return on investment than Hawesko Holding. However, BECLE SAB is 2.03 times more volatile than Hawesko Holding AG. It trades about 0.02 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.04 per unit of risk. If you would invest 121.00 in BECLE SAB DE on September 12, 2024 and sell it today you would lose (3.00) from holding BECLE SAB DE or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BECLE SAB DE vs. Hawesko Holding AG
Performance |
| Timeline |
| BECLE SAB DE |
| Hawesko Holding AG |
BECLE SAB and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BECLE SAB and Hawesko Holding
The main advantage of trading using opposite BECLE SAB and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BECLE SAB position performs unexpectedly, Hawesko Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.| BECLE SAB vs. Diageo plc | BECLE SAB vs. Thai Beverage Public | BECLE SAB vs. Rmy Cointreau SA | BECLE SAB vs. Treasury Wine Estates |
| Hawesko Holding vs. Diageo plc | Hawesko Holding vs. Thai Beverage Public | Hawesko Holding vs. Rmy Cointreau SA | Hawesko Holding vs. Treasury Wine Estates |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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